The plant load factor or capacity utilisation of coal fired thermal power plants is expected to improve 100 basis points to 65% this financial year despite strides achieved in renewable energy capacity addition, according to a study.
Power demand is seen growing 5-6% and a large portion will be met by existing coal-based plants despite renewable energy accounting for 90% of the 34GW capacity adeed in the last two years, Crisil said in its report.
In GW terms, this is a 9% growth in power capacities but on normative terms this is only 4-5% growth because renewables operate at 20% (for solar and wind) and 40% (for hydel) capacity. Thermal plants function at 65% plant load factor so in this incremental supply coal-based power plants remain an important cog accounting for 69-71% of total power generation.
“That said, a good portion of the incremental generation will be met by existing coal-based power plants as material coal-based capacity is envisaged this fiscal and relatively low-capacity addition of hydro, biomass and nuclear,” Crisil said.
The higher PLFs will continue to be supported by conducive fuel supply as domestic coal production, building upon its record high of 893 million tonne (MT) last fiscal, is on track to achieve 11-13% growth projected for this fiscal, director at Crisil Ratings Ankit Hakhu said.
Moreover, coal allocation under various e-auction modes has notably improved, Crisil noted.
Evacuation infrastructure has also witnessed augmentation with railway rakes for coal transportation 8% higher on-year.